• Production Planning is the process of aligning demand with manufacturing capacity to create production and procurement schedules for finished products and component materials.
• SAP PP is an important module of SAP. It tracks and makes a record of the manufacturing process flows, for example, the planned and actual costs. Also, goods movements from the conversion of raw material to semi-finished goods.

• It is fully integrated with the other SAP modules: SD, MM, QM, FICO & PM.

Organization Structure in SAP PP

In any live Production Planning module, locations of manufacturing plants and storage within the plants, should be available in the system.

Importance of Plant and storage locations in Production Planning-

• All Production master data is created at Plant level.
• Planning activities are also performed at Plant level.
• Production Confirmation process and related goods movement occur at plant and storage location level.